Abstract

Many past studies have examined the association between entrepreneurial orientation (E.O.) and organizational performance (O.P.). However, these studies have not adequately addressed the mediating roles of acquisition learning (A.L.) and experiential learning (E.L.) on organizational performance. Given this gap, we have developed a new model that contains six direct relationships, three mediating relationships, and one multi-mediating relationship. The focus of the study was on Indonesian Pharmaceutical SMEs. We have collected a sample of 365 respondents non-randomly. For statistical analysis, we have used Smart PLS version 3.2. The statistical analysis includes reliability, validity, and descriptive statistics. The results confirm that acquisition learning (A.L.), experiential learning (E.L.), and entrepreneurial orientation (E.O.) promote organizational performance (O.P.). We also found that entrepreneurial orientation (E.O.) impacts acquisition learning (A.L.) and innovative performance (I.P.) but does not affect organizational performance (O.P.). However, the results suggest that acquisition learning (A.L.) and experiential learning (E.L.) are positively linked. Our results also support all the mediating relationships.

Highlights

  • SMEs contribute to employment generation, financial and economic development. (Siriattakul, Sawasdee, Kalawong & Jermsittiparsert, 2019)

  • We found that entrepreneurial orientation (O.E.) has an impact on acquisition learning (A.L.) and innovative performance (I.P.) but does not affect organizational performance (O.P.)

  • The results suggest that acquisition learning (A.L.) and experiential learning (E.L.) are positively linked

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Summary

Introduction

SMEs contribute to employment generation, financial and economic development. (Siriattakul, Sawasdee, Kalawong & Jermsittiparsert, 2019). SMEs contribute to employment generation, financial and economic development. SMEs help in mitigating unemployment, reducing poverty, and contributing to other socio-economic issues. In Southeast Asia, about 80% of workers are employed in SMEs with a contribution towards GDP of about 50%. SMEs represent 96 % of business entities in this region (Rosli, Lokman, Aziz & Hamidi, 2015). Indonesia’s SMEs, especially the pharmaceutical sector, is considered a strategic industry for growth and development. It needs support from the government regarding soft loans, low taxes, and rebates on imports of plants and machinery (Wibowo, Ahmad & Fauzi, 2019). Recently the performance of pharmaceutical SMEs in Indonesia has declined significantly

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